Memorandum of understanding on cooperation between payment systems overseers and banking supervisors in stage three of economic and monetary union

2 April 2001

The European Central Bank, the national central banks of the Eurosystem and the national central banks of the Member States that have not adopted the single currency, in their capacity as overseers of payment systems, as well as the banking supervisory authorities of the Member States of the European Union (EU), have agreed on a Memorandum of Understanding (hereinafter referred to as "the MoU") on specific arrangements for co-operation and information sharing in Stage Three of Economic and Monetary Union (EMU) in relation to large-value payment systems. The authorities which adopted the MoU and the payment systems within its scope are listed in Annexes 1 and 2 to this Press Release. The banking supervisory authorities contributed to the preparation of the MoU through the Banking Supervision Committee of the European System of Central Banks (ESCB). The MoU entered into force, retroactively, on 1 January 2001 and replaces a previous arrangement in force since 1994. The non-legally binding nature of the arrangement has been maintained.

The interplay between the function of payment systems oversight and the function of prudential supervision has been affected by the establishment of EMU. Whereas the oversight of payment systems is one of the basic tasks of the Eurosystem in accordance with the fourth indent of Article 105 (2) of the Treaty establishing the European Community and Articles 3.1 and 22 of the Statute of the ESCB, the responsibility for prudential supervision has remained with the competent national authorities.

The arrangements provided by the MoU may be reviewed within three years to take into account experience or market developments.